How a German/Chinese company views the situation
In these pandemic times, it’s hard to get definite answers on almost anything, we learn something new every day and week, and a lot of what is happening doesn’t seem to make sense. In short, for almost a year now, we’re all just going along for the ride.
That’s why a news communication from faytech this morning caught my eye and attention. faytech’s founder is German but the company is now mostly located in China. Their motto is merging high German engineering standards with attractively priced Asian manufacturing. We reported on the faytech story four or five years ago (see here).
The faytech news I am referring to is the “general situation overview” faytech presents. And here is what they have to say:
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Pricing, Stock, Components and Deliveries Notice
The world did not only change greatly last year due to Covid-19, but also because of the global situation related to the major change of delivery times, pricing and the availability of display & electronic components. We feel it is the right decision start the year with a general situation overview.
Shortage of Product Components
Due to the pandemic situation and the general trade difficulties, especially between China and the US, there is less investments in manufacturing capabilities, while there is an increased demand of electronic components (e.g. the global shortage of electric components for electric vehicles). faytech has increased its stock capacity and partly already invested in safety stock, however, especially with non-forecasted projects, longer lead times will be expected. Thus, we ask you for your support – please provide us as much as possible information related to your project and expected sales-forecast – this in turn will allow us to prepare the material accordingly.
Increase in Pricing of Components
Due to the shortages of components, the prices have also increased the last months. With a critical accident at NEG’s Takatsuki glass furnace on 10th December leading to an estimated damage of up to 4 million sqm of glass substrates, the capacity display prices increased even further.
Update in Transportation Fees and Capacity
With the current Covid-19 pandemic still globally affecting travelling, the price of air transportation has increased significantly as well, all while the transportation capacity decreases due to the limited available flights. We reacted fast and try to send most of our goods by train and ship now – but please accept extra fees and higher than expected express costs for urgent deliveries. Best, as said earlier, would be to provide us your demands as early as possible, even when you didn’t receive it as orders from your customers yet – we will be flexible in working out a best compromise together.
Yet, with this situation given, we have to partially increase pricing as well. Please check our B2B Webshop overview or contact your local sales office to get a complete update.
We are working hard to keep the effects as low as possible for you – our partners and customers.
Kudos to faytech for such open and information updates!